Insurtech Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Insurtech Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Insurtech Market size in terms of premium value is expected to grow from USD 0.79 trillion in 2024 to USD 1.20 trillion by 2029, at a CAGR of 8.30% during the forecast period (2024-2029).

The global insurtech market is expected to grow significantly during the forecast period, owing to the factors such as simplification of the claims process, improved communication with the client, and the capabilities to implement automation. Insurtech emerged in the past decade, but its expansion has surged notably in recent years. The insurance industry, historically characterized by its complexity and stringent regulations, remained largely untouched by new technologies and business models. Despite prevailing economic and political conditions, optimism has propelled the post-pandemic Insurtech market, which is marked by a substantial uptick in both deal volume and financing.

The health insurance market is expected to have the highest growth rate in the upcoming years as the adoption of Insurtech is significantly higher compared to that of other insurance sectors. The number of deals made has risen continuously during the past few years, owing to the increased preference for technological advancements, such as artificial intelligence, machine learning, and blockchain technology in the insurance sector. The capability of the Insurtech companies to drive innovation in the insurance market by developing new products will help insurance companies meet dynamic customer requirements.

Insurtech Market Trends

Automotive Segment is Driving the Market

The automotive insurance industry is undergoing a complete revolution thanks to digitization, particularly telematics technology. There are a lot of reasons why telematics is becoming more common, and drivers are tired of paying too much for their car insurance, but the most important factor is that they want alternatives to traditional models in determining premiums. Moreover, the system of no visible rewards to good drivers while harsh penalties are imposed on those who engage in a single traffic violation, like speeding tickets or small fender benders, is exhausting them.

Insurtech companies play an important role in the automotive insurance industry, specializing in fraud detection and automated claims processing. It analyses huge volumes of data to detect patterns and anomalies and helps insurance companies fight fraud by streamlining their claims processes through its sophisticated AI and ML algorithm. Serving multiple sectors in the insurance industry, auto insurance enables faster and more accurate claims assessments while ensuring fair settlements to minimize financial losses through its fraud detection capabilities.

Asia Pacific Fastest Growing Market

The Insurtech industry in the Asia Pacific is growing due to several emerging economies and financial centers such as China, India, Hong Kong, Singapore, and Indonesia. Insurance service providers in this region are focused on providing cost-effective insurance premium plans. In recent years, Insurtech investments in the APAC region have increased as disruptive technologies transform the insurance industry. The rapid digitization and adoption of innovative business models are driven by smartphone penetration, increasing internet penetration, and changing customer preferences. Insurtech investment in APAC has been solid in China, India, and Southeast Asia.

The APAC region has seen a surge in Insurtech investments due to several factors. One of the most important is the rapid urbanization, which has increased disposable income for many people in the region. The APAC Insurtech market is expected to grow, driven by increased digital adoption, changing consumer behavior, and a changing regulatory environment conducive to innovation.

Insurtech Market Overview

The insurtech market iWith the involvement of a large number of small players that cater to the needs of life and non–life insurance sectors, the Insurtech market is highly fragmented. The report includes an overview of the major international players operating in the market studied. Currently, some of the notable players based on their growth potential and industry significance are Banc Insurance Agency Inc. (Insuritas), Policy Bazaar, ZhongAn Online Property & Casualty Insurance Co. Ltd., Clover Health Insurance, and Acko General Insurance Limited, among others.

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